Bonds were well bid into the US open this morning and stocks had given up all their 'shutdown' gains and slid further on the ADP news which had nothing to further the case for taper or no taper. The big turnaround happened when rumors circulated of a 'deal' - which were later denied - but by then the momentum had caught on. Luckily the rumor coincided with POMO and we lifted a majestic 7 S&P points into the European close. Treasuries initially ignored the rise but gave in after a while with yields rising but stocks remaining notably disconnected from bonds by the close. The late-day collapse in VIX yesterday evaporated was smashed higher, divergent from stocks in the afternoon until another pathetic ramp into the close which lifted the S&P to its day-session highs but closed down for the 8th of the last 10 days. Gold and Silver blew higher on the day recovering all yesterday's losses.
Stocks once again bounce away from bonds...
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Gold and silver retrace all yesterday's losses...
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The Nasdaq outperforms again but the Dow ends the day unchanged from pre-Shutdown - giving all the gains back...
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FX markets were driven by EUR strength as Draghi came up short on his jawboning...
VIX notably diverged this afternoon as stocks ramped...
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Charts: Bloomberg